On Thursday, February 13, Governor Kelly Ayotte delivered her 2025 Budget Address. The full speech, as prepared, can be found below:

Mr. Speaker, Madame President, honorable members of the House and Senate,
Councilors, Commissioners, my fellow citizens,

Our state is on a remarkable upward trajectory, and today, I am here to present my recommended budget for Fiscal Years 2026 and 2027, which will keep us on the path to greater prosperity for all of New Hampshire.

We begin this year with our economy in a very strong position. Our rate of job growth exceeds the national average and is the best in New England. New business start-ups surpass the national average. Unemployment is low, wages continue to rise, and we are outperforming our neighbors across a host of economic measures.

Our New Hampshire Advantage is on full display. Our prudent, financially responsible approach to taxes and regulations, along with our commitment to protecting our unique quality of life, has made us a prime destination in the region for top talent.

As individuals assess their opportunities and families evaluate their cost of living and quality of life, New Hampshire stands out as a place where they can realize their full potential. What we’ve built over the past several years is special, and all of New Hampshire is benefiting from it.

However, this success does not come without challenges—such as increasing our housing supply, maintaining a best-in-class education system, and keeping up with demand for essential services. But I firmly believe that together, we can meet these challenges head-on.

When I stood here one month ago, I spoke of the necessity for us to recalibrate. I told you that we must operate within our means and meet our commitments to those who depend on us.

For the past several years, our budgets have been bolstered by billions of dollars in federal funds due to the COVID-19 pandemic. We also saw record-high revenues that made surplus spending in new areas possible.

Our last budget saw a 21% spending increase over a two-year period, not including additional off-budget spending. The simple fact is that our revenue landscape today looks very different from the past several years.

With federal transfers dropping and overall revenues lower, a recalibration of our approach is necessary—not only in the total amount we spend but also in how we steward every taxpayer dollar.

But let’s be clear about something—something our friends across the aisle don’t seem to understand: New Hampshire is strongest when individuals, families, and small businesses have more money in their pockets to make their own critical decisions. That’s where the strength of our state lies—not in government, but in the hardworking people who create jobs and opportunities for others.

The solution to our challenges is not to take more from our citizens through higher taxes. Instead, we must carefully and thoughtfully examine what we are doing as a state, asking: Do we need to be doing it? Can we afford to be doing it?

Much of what we do best in New Hampshire happens at the local level. That’s why this budget continues to send more funding to local governments than ever before in our state’s history.

And that’s why I challenge our local officials to take the same approach we do at the state level—carefully evaluating spending priorities. Given that we are providing them with more support than ever before, they must, in turn, pass along relief to taxpayers through lower property taxes whenever possible.

A Responsible Budget
In crafting this budget, our guiding principle has been to deliver a responsible plan that reflects a recalibration of spending while upholding our New Hampshire tradition of not raising taxes.

We have a constitutional responsibility to deliver a balanced budget for the citizens of New Hampshire. Our team rolled up our sleeves to find savings while ensuring we meet our commitments.

Compared to our last budget, we are spending $150 million less in General Funds. This reduction was careful and strategic—achieved with a scalpel, not a shovel. We avoided across-the-board cuts and prioritized those who rely on state services.

We focused on making government more efficient—cutting bloated contracts with out-of-state vendors, streamlining agency operations, and working with commissioners to fine-tune spending.

We also made responsible adjustments in line with national trends. For example, we brought adult Medicaid eligibility back to pre-pandemic levels and joined our neighbors in requiring nominal co-pays for recipients of these benefits.

I’d like to thank our commissioners for their diligence in working through this process and their openness to new ideas and approaches.

Investing in Our Communities
Those who depend on state services can rest assured—this budget delivers for them. Rising costs impact everyone, and we’ve heard loud and clear the need to support our communities in meeting the demands of tomorrow.

This budget:

• Sends more money to local governments than ever before
• Increases education funding to record levels
• Begins the Group 2 retirement system overhaul to support our public safety employees
• Provides a nearly 50% increase in special education funding
• Expands education freedom to all public school students
• Supports efforts to reduce cell phone distractions in classrooms
• Continues the tuition freeze at community colleges
• Ensures no waitlist for disability services
• Streamlines the permitting process for housing development

Commitment to Education
We are spending more on education than ever before while keeping our students and teachers first.

This budget continues the funding increases of the last biennium and ensures that our schools have the resources they need. Specifically, we are making a $98.8 million investment in special education—a nearly 50% increase from the previous biennium.

We understand the financial burden on towns providing special education services, and we want to help lessen that pressure while ensuring students receive the resources they deserve.

We are also expanding education freedom to all public school students—empowering parents to choose the best learning environment for their children so that every child has the opportunity to succeed.

Additionally, we are making good on our promise to curb cell phone distractions in classrooms. This budget provides $1 million in grants to help school districts develop customized approaches to keep students focused on learning.

At Stevens High School in Claremont, students place their phones in secure pouches at the start of the school day and unlock them at the end. This approach is reducing distractions and helping curb cyberbullying—without placing an undue burden on teachers.

Strengthening Our Workforce
We are making key investments in our community colleges and workforce training programs to ensure a strong pipeline of talent for high-demand industries.

• $4.4 million to keep community college tuition flat
• $6 million for dual/concurrent enrollment, helping high school students jumpstart their careers
• Expansions in career and technical education and workforce credentialing programs for skilled trades and healthcare jobs

Just last week, I heard about Lindsay Taylor, a mom of two, who wanted to change careers and serve her community. She completed the short-term LNA credentialing program at NHTI, passed her licensing exam, and now works in dementia care at the Merrimack County Nursing Home.

Lindsay is proof that targeted workforce investments create real opportunities for real people.